Current manager Manuel Pellegrini has a contract until 2017 after signing a 12 month extension to his existing deal in August.

But the Chilean knows another season of failure will see him axed, with Etihad bosses desperate to lure Guardiola to the Premier League.

Guardiola has refused to discuss his future at Bayern Munich, where he is on a mission to win the Champions League.

The Spaniard, who is also a target of Chelsea, is set to be offered a lucrative mega-money deal to remain at the German giants that would make him the highest-paid boss in world football.

The prospect of missing out on Guardiola has put City chairman Khaldoon Al-Mubarak on red alert as he prepares a back-up plan for the prospect of having to replace Pellegrini.

** COOLEST FOOTBALL KITS EVER **

The best football kits ever

STARSPORT present 66 of the best football kits in history.

1 / 66

GETTY

Barcelona home (2012-13)

GETTY

STAR MAN: Guardiola is City's number one choice to replace Pellegrini

“Pellegrini’s job is safe at the moment, but we know how quickly this can all change and if it did then Carlo Ancelotti is one of two men the club want”

Source close to Man City

Starsport can reveal Al-Mubarak has targeted Ancelotti as the best alternative and will turn to the Italian should the job become available.

It is understood the former Chelsea and Real Madrid boss is aware City are keeping tabs on his situation and is keen.

A source said: “Pellegrini’s job is safe at the moment, but we know how quickly this can all change and if it did then Carlo Ancelotti is one of two men the club want.”

Ancelotti, 56, has been out of work since being sacked by Real in May following a woeful season with the Spanish giants, despite winning a club record 10th European Cup 12 months earlier.

There is nothing to suggest City are planning to sack Pellegrini, who has led his side to the top of the Premier League table and into the knockout stages of the Champions League with two group games to spare.

GETTY

SECOND BEST: Ancelotti is next in line if Guardiola snubs City

But he knows he is still on trial this season after avoiding the sack by the skin of his teeth last summer following a campaign without a single trophy.

Meanwhile David Silva hopes to make it double trouble for Liverpool boss Jurgen Klopp.

Silva has stepped up his recovery from an ankle injury and - just like star striker Sergio Aguero - is now targeting the visit of Klopp’s men a week on Saturday for his comeback.

The Spanish star has been sidelined since the start of October after getting injured while on international duty against Luxembourg in a Euro 2016 qualifier.